AMERICAS BUNKERS: Key market indicators March 15-19

New York — Spot marine fuel pricing in the Americas showed mixed movements during the week of March 8-12, as direction came primarily from key upstream crude indicators while demand fundamentals were largely unchanged.

Latin America

Marine fuel 0.5%S in Latin America start the week in divergent paths, as some ports have seen solid price increases in the last few days, while some key hubs have shown declines.

In a week where global oil markers ended with slight gains — headed by a 1.4% advance in ICE prompt-month Brent to $69.20/b, Balboa —, Santos and Buenos Aires experienced declines, amid an environment of higher demand but also strong competition.

In Balboa, the 0.5%S fell $7 (1.3%) in the week from March 8 to March 12, to end at $523/mt.

"Very healthy demand, a little bit less than in February but nothing substantial," a market source said of Panama's market conditions.

Another source said the cost of resupply seemed to be higher than expected. However, deals heard done at considerable lower prices than offers point to a competitive market.

With activity picking up, Monjasa said last week it is launching operations at the Port of Cristobal's outer anchorage, which will help to reduce idle times for large ships waiting to navigate the Panama Canal. Cristobal is located on the Caribbean Coast, where around 15% of Panama's bunker sales are executed.

In Argentina, bunkers' demand has started to pick up along with the beginning of the corn harvest, and a market source said the soy harvest in April might keep it strong. The week ended March 12, 0.5%S was assessed at $525/mt in the port of Buenos Aires, down $18 (3.3%), also amid strong competition.

In Brazil, the 0.5%S in Santos declined $6 (1.1%) to $527/mt.

Other Latin American ports saw increases. In Guayaquil, the fuel rose $9 (1.6%) to $578/mt, in Valparaiso it jumped $2 to $622/mt and in Montevideo it rose $5 (0.8%) to $625/mt.

In Cartagena, the advance was of $15 (2.8%) to $555/mt. Market sources said demand in the Colombian port has increased but not strongly. However, the steep increase in Brent futures and other markers have pushed up values.

"The tendency [in prices] since a while ago is upwards, I don't know if it is natural or being forced," by increases in the energy complex, a source said. However, requests of bunker services have kept coming, the source added.

East, West coasts

Along the Atlantic Coast, market activity was muted for most ports and spot values ended the week lower in tracking an overall weaker US crude complex.

Spot 0.5%S retail marine fuel pricing shed $3 (0.6%) over March 8-12 in New York to close the week at $519/mt ex-wharf, and the Philadelphia assessment also shed $3 (0.6%) at $524/mt ex-wharf.

MGO spot pricing trended slightly higher in both ports, with New York gaining $2 (0.3%) at $582/mt ex-wharf, and Philadelphia moving up $2 (0.3%) at $583/mt ex-wharf.

On the West Coast, spot assessments showed mixed movements over the week on direction from relevant Asian segments.

The Vancouver spot price for retail 0.5%S fell $2 (0.4%) to $533/mt ex-wharf, and MGO pricing rose $4 (0.6%) to $635/mt ex-wharf.

USGC

US Gulf Coast ports trended mostly higher March 8-12, with weak demand remaining an issue amid talk of resupply and congestion in New Orleans.

The Houston spot price for 0.5%S retail marine fuel rose $10 (2%) to $515/mt ex-wharf, and the MGO assessment rose $12 (2.1%) to $590/mt ex-wharf.

In New Orleans, the premium to Houston widened as sources pointed to ongoing issues with resupply and congestion.

Ex-wharf New Orleans spot 0.5%S retail pricing rose $15 (2.9%) to $530/mt, and the MGO assessment climbed $17 (2.9%) to $610/mt ex-wharf.

"Heavy congestion in New Orleans for at least 10 days out. Houston not so bad," a regional supplier said, adding that the congestion was partly related to issues with resupply in the region. The movements left New Orleans pricing at its highest point in nearly 14 months on 0.5%S, matching a $530/mt ex-wharf assessment on Jan. 23, 2020, according to S&P Global Platts data.

Likewise, the MGO assessment for New Orleans now sat at its highest point since Jan. 13, 2020, Platts data showed.